- A
Audit
Why wrong: Audit only logs whether a resource is compliant or non-compliant; it does not make any changes to the resource. It would not automatically configure the diagnostic settings.
- B
Deny
Why wrong: Deny blocks the creation or modification of a resource that does not meet the policy condition, but it does not remediate existing resources that are already non-compliant.
- C
DeployIfNotExists
DeployIfNotExists is designed to deploy a template or resource when a non-compliant condition is detected. In this case, it would automatically create the missing diagnostic settings on each VM, achieving automatic remediation.
- D
Modify
Why wrong: Modify can change properties of an existing resource, but diagnostic settings are a separate child resource, not a property. DeployIfNotExists is the appropriate effect for deploying a new resource like diagnostic settings.
Quick Answer
The answer is the DeployIfNotExists effect. This Azure Policy effect is the correct choice because it automatically deploys a diagnostic settings configuration to any virtual machine that lacks it, ensuring compliance without manual intervention. When the policy evaluates resources, DeployIfNotExists checks for the missing condition—in this case, absent diagnostic settings—and triggers a remediation task to deploy the required configuration to a central Log Analytics workspace. On the AZ-900 exam, this question tests your understanding of Azure Policy effects and their practical use cases; a common trap is confusing DeployIfNotExists with Audit or Deny, since Audit only logs non-compliance without fixing it, and Deny blocks non-compliant creation but does not remediate existing VMs. For the exam, remember the memory tip: "DeployIfNotExists deploys what's missing"—if a resource lacks a required configuration, this effect automatically deploys it to bring the resource into compliance.
AZ-900 Describe Azure management and governance Practice Question
This AZ-900 practice question tests your understanding of describe azure management and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company has an Azure subscription with 200 virtual machines. The compliance team requires that all virtual machines have diagnostic settings enabled to send metrics and logs to a central Log Analytics workspace. The team wants Azure to automatically configure these diagnostic settings on any VM that currently lacks them, without manual intervention. Which Azure Policy effect should the team use in the policy definition?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
DeployIfNotExists
The DeployIfNotExists effect is correct because it automatically deploys a diagnostic settings configuration to any VM that lacks it, ensuring compliance without manual intervention. This effect evaluates resources and, if they do not meet the condition (missing diagnostic settings), triggers a deployment to remediate them. Audit only logs non-compliance without fixing it, and Deny blocks non-compliant creation but does not remediate existing VMs.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Audit
Why it's wrong here
Audit only logs whether a resource is compliant or non-compliant; it does not make any changes to the resource. It would not automatically configure the diagnostic settings.
- ✗
Deny
Why it's wrong here
Deny blocks the creation or modification of a resource that does not meet the policy condition, but it does not remediate existing resources that are already non-compliant.
- ✓
DeployIfNotExists
Why this is correct
DeployIfNotExists is designed to deploy a template or resource when a non-compliant condition is detected. In this case, it would automatically create the missing diagnostic settings on each VM, achieving automatic remediation.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Modify
Why it's wrong here
Modify can change properties of an existing resource, but diagnostic settings are a separate child resource, not a property. DeployIfNotExists is the appropriate effect for deploying a new resource like diagnostic settings.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Audit (which only reports) with DeployIfNotExists (which actively remediates), or mistakenly think Deny can retroactively fix existing resources when it only blocks new non-compliant deployments.
Detailed technical explanation
How to think about this question
DeployIfNotExists uses a managed identity (system-assigned or user-assigned) to perform ARM template deployments that configure diagnostic settings, and it can be combined with a remediation task to fix existing non-compliant resources. The policy definition includes a 'deployment' property specifying the template and parameters for the Log Analytics workspace connection. This effect is evaluated during policy evaluation cycles and can also trigger on resource creation or update via the 'then' block.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe Azure management and governance — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-900 question test?
Describe Azure management and governance — This question tests Describe Azure management and governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: DeployIfNotExists — The DeployIfNotExists effect is correct because it automatically deploys a diagnostic settings configuration to any VM that lacks it, ensuring compliance without manual intervention. This effect evaluates resources and, if they do not meet the condition (missing diagnostic settings), triggers a deployment to remediate them. Audit only logs non-compliance without fixing it, and Deny blocks non-compliant creation but does not remediate existing VMs.
What should I do if I get this AZ-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This AZ-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-900 exam.
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